On January 14, 2015, the SEC approved a set of final rules Regulation SBSR. The first rule establishes registration, duties and core principles of security-based swap data repositories and the second, Regulation SBSR, outlines the reporting and dissemination procedures for security-based swap information.

Finalized Swap Data Rules, with Links to Originally-Proposed Rule

On June 14, 2016 the U.S. Commodity Futures Trading Commission (CFTC) approved a final rule that amends existing swaps reporting regulations in order to provide more clarity to swap counterparties and registered entities regarding their reporting obligations for cleared swap transactions; and to improve the efficiency of data collection and maintenance associated with the reporting of the swaps involved in a cleared swap transaction. [1]

The Final Rule aims to remove uncertainty as to which counterparty to a swap is responsible for reporting creation and continuation data for each of the various components of a cleared swap transaction, including to further clarify whose obligation it is to report the extinguishment of a swap upon its acceptance by a derivatives clearing organization (DCO) for clearing [1].

Access to SDR Data by Market Participants, March 2014

On March 26, 2014, the CFTC issued an interim final rule and request for comment on access to market data by parties to a swap. The rule clarifies that, for swaps executed anonymously on a DCM or a SEF, "the data and information maintained by a registered SDR that may be accessed by either counterparty to the swap does not include the identity of the other counterparty to the swap, the identity of the other counterparty’s clearing member for the swap, or such counterparty’s or clearing member’s legal entity identifier."[2] The deadline for public comment is April 25, 2014. Comments may be found HERE.

Reporting of Swap Transaction Data, January 2013

Effective December 31, 2012, swaps on interest rates and credit derivatives traded on a designated contract market (DCM) or traded "off-facility," in which one or more counterparty is a swap dealer, must report transaction and pricing data to an SDR; reporting began on February 28, 2013 for swap dealer transactions in the other three asset classes (equity, foreign exchange, and commodity swaps.

On April 10, 2013, reporting of all remaining off-facility swaps, excluding the real time reporting of off-facility swaps in the other commodity asset class as noted above will begin. Time delays will be phased in over a two-year period as shown in the table below.

At its October 1, 2010 open meeting, the CFTC issued an interim final rule on pre-enactment transition ("historical") swaps, which are swap transactions entered into prior to the passage of the Dodd-Frank Act and subsequent regulatory rulemakings. The interim rule requires the registration of any unexpired swaps to be reported to a SDR at a date to be set by the commission, and to maintain certain transaction records that may be required once rules have been finalized. These terms were further defined in a subsequent proposal at the CFTC Open Meeting, April 12, 2011.

"register with the Commission by filing a new Form SDR, and to update the filing when the information becomes inaccurate. The rules also would provide a process for the Commission to cancel or revoke the registration of an SDR;

provide the Commission access to security-based swap data, provide reports to the Commission relating to this data, and provide security-based swap data to relevant authorities upon request;

accept all security-based swaps reported to them (in asset classes that the SDR accepts);

accept transaction data and maintain it for not less than five years after the expiration of the applicable swap, and to calculate positions and maintain them for not less than five years; [and]

"require SDRs to make certain disclosures to a market participant prior to accepting any security-based swap data from that market participant; [and]

require an SDR's board of directors or a body performing a similar function to designate a chief compliance officer, who would be responsible for, among other things, preparing an annual compliance report, which must be filed with the Commission along with an annual audited financial report."

The Securities and Exchange Commission announced on July 13, 2016 that it has adopted amendments and guidance related to rules regarding the regulatory reporting and public dissemination of security-based swap transactions (Regulation SBSR). The new rules are designed to increase transparency in the security-based swap market. The rules also follow mandates from the Dodd-Frank Wall Street Reform and Consumer Protection Act. The rules do things such as: assign the reporting duties for platform-executed security-based swaps that will be submitted to clearing and for security-based swaps resulting from the clearing process, establish regulatory reporting and public dissemination requirements for certain cross-border security-based swaps, and prohibit registered swap data repositories (SDRs) from imposing fees or usage restrictions on the security-based swap transaction data that Regulation SBSR requires them to publicly disseminate. [4]

"report certain information relating to pre-enactment security-based swaps to a registered security-based swap data repository after such registered security-based swap data repository is operational, or to the Commission;

report information relating to pre-enactment security-based swaps to the Commission upon request;" and